Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is count- one tenant-day. During February,

image text in transcribed

Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is count- one tenant-day. During February, the kennel budgeted for 3,000 tenant-days, but its actual level of activity wa tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and it results for February: Data used in budgeting: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for February: Revenue Wages and salaries Fixed element per month $ 0 $ 2,000 $ 106,530 Variable element per tenant-day $ 29.50 200 $ 5.50 10.30 7,000 2.50 6,800 0.30 $ 16,000 $ 18.60 Food and supplies Facility expenses Administrative expenses $ 23,400 $ 36,780 $ 19,150 $ 9,120 The activity variance for net operating income in February would be closest to:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Kemp, Jeffrey Waybright

2nd edition

978-0132771801, 9780132771580, 132771802, 132771586, 978-0133052152

More Books

Students also viewed these Accounting questions

Question

Prove the theorem by plugging P = 1 + (1 ) 2 into (6.46). (6.46)

Answered: 1 week ago